Discuss the Key Elements of Total Quality Management

8/13/2019 Discuss the Key Elements of Total Quality Management

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M a r k L o u g h l i n

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There are many interpretations and definitions ofTQM. Put simply, TQM is the mutual cooperation ofeveryone in an organisation and associated businessprocesses to produce value-for-money products andservices to meet and hopefully exceed the needs andexpectations of customers.Barrie G. Dale, 2004

Discuss the key

elements of TotalQuality

Management within

the context of theemerging business

environment


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Contents

Introduction .............................................................................................................................................. 3What is Total Quality Management? ...................................................................................................... 3

Inspection .............................................................................................................................................. 4Quality Control ..................................................................................................................................... 4Quality Assurance ................................................................................................................................. 4Total Quality Management .................................................................................................................. 4

The Core Elements of TQM ..................................................................................................................... 5Systems and Techniques ...................................................................................................................... 5Processes ................................................................................................................................................ 6Management ......................................................................................................................................... 7

People .................................................................................................................................................... 7Teamwork .............................................................................................................................................. 8Culture ................................................................................................................................................... 8

The emerging business world .................................................................................................................. 9Consumer service explosion ................................................................................................................ 9Time compression ................................................................................................................................ 9Globalisation ........................................................................................................................................ 10Organisational Integration ................................................................................................................. 10

Conclusion ................................................................................................................................................ 10Bibliography ............................................................................................................................................. 12


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IntroductionThe purpose of this report is to look at the history of Total Quality Management (TQM) andidentify the elements that are within this business improvement tool. With these key elements I

will then be looking at how TQM is used within the current business environment and how its

elements affect all levels of an organisation.

What is Total Quality Management?Concepts developed in Japan beginning in the late 1940's and 1950's, pioneered there by

Americans Feigenbum, Juran and Deming set the foundations of TQM. The evolution of TQMhappened in a few stages easily identified as Inspection, Quality Control, Quality Assurance andnow Total Quality Management.

(Barrie G. Dale, 2007)


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InspectionThis method at one stage in time was the only method that was able to ensure a certain level ofquality for a product or service. In manufacturing incoming goods and output would bemeasured and physically inspected for defaults or not meeting required guidelines. Services

would be appraised at certain levels and inspected in production and delivery. The inspectionprocess is an after-the-event measurement process that can only result in non conformingproducts being sent back to be re-worked or result in lower graded products that are produced ina rating system.

Quality ControlQuality control remains in the operation of detecting mistakes, finding and fixing them after theevent has occurred.

Under a quality control scheme you may find that everything is closely monitored, with detailedperformance and product specifications as well as control systems for paperwork and procedures,

product testing at raw material and mid-production stages with reports being filed and overallfeedback on the processes involved to personnel and suppliers.

Quality control brought about delegation of quality inspection to approved operators with moresophisticated methods and systems. This brought about a higher number of process control withless non-conforming products being delivered to customers through screening.

Quality AssuranceA lasting continual improvement in quality was needed as finding and solving problems wasntviewed as an effective means to eliminate the root problems. It was identified that this could onlybe achieved by targeting efforts towards planning and prevention of problems occurring at theroot source. On this basis Quality Assurance was developed.

Quality systems development, advanced quality planning, comprehensive quality manuals, use ofquality costs, involvement of non-production operations, failure mode and effects analysis arefeatures attained through progression from quality control to quality assurance. At a minimumthe systems adopted are likely to have met the requirements of BS EN ISO 9001 (2000). Overallthe organisation should experience a shift in emphasis from detection towards prevention of non-compliant produce.

more emphasis is placed on advanced quality planning, training, critical problem solving tasks,improving the design of the product, process and services, improving control over the process andinvolving and motivating people (Barrie G. Dale, 2007)

Total Quality ManagementTotal Quality Management (TQM) is an initiative which aims to involve every member of anorganisation, at all levels, in improving the standard of product or services that they provide.

The history of quality management, from mere 'inspection' to Total Quality Management, and itsmodern 'branded interpretations such as 'Six Sigma', has led to the development of essentialprocesses, ideas, theories and tools that are central to organisational development, change


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management, and the performance improvements that are generally desired for individuals,teams and organisations.

Total Quality embraces not only the quality of a specific product or service, but everything anorganisation does, might or should do to determine the opinion not only of its immediatecustomers or end-users, but its reputation in the community at large. Dr J. M. Juran, the

American quality guru, defines the difference between Total Quality and product quality ascapital Q vs small q. (Hutchins, 1992)

TQM should be implemented into a company as a Kaizen initiative, Kaizen is a strategydeveloped by the Japanese meaning continuous improvement. So with TQM, it should be at thecore of an organisation and employed every working day, to achieve the best quality attainable.

Total Quality Management (TQM) is a continuous set of mindset that keeps on improvementprocesses for individuals, groups and whole organizations by understanding and discovering

better process. (Poonsook Janpen 2005)

The Core Elements of TQMMost excellence models trace their roots back to TQM, as TQM is the foundation of setting anorganization up for managing its output at every level to achieve standards.

The following are most of the core elements of TQM.

Systems and TechniquesThese are Quality awards and excellence models that are used to present the essential controls

and discipline, in the development of quality management systems.

Identification of the relevant tools and techniques pertinent to each different stage is required.This includes the area/project and the conditions in which the tools should be used to achievesuccessful application. The tools used should be identified as familiar to employees and beclassified as core or optional depending on their nature and impact each has on the workingenvironment.

If a formal system for quality management isnt in place within the organisation one should beconsidered, the BS EN ISO 9001 (2000) is a good starting point for all companies as it outlines themajor requirements.

Some of the systems they could use are the ISO 9000 series, EFQM Model, Investors in Peopleand Charter Marks. Integration of the most relevant of professional systems shouldnt conflictwith priorities and policies. Some of these systems and standards may be required as part ofcontractual agreements or legislative requirements.

In Assessing Business excellence (Tanner, 2004), they outline that self-assessment results whenset against an excellence framework provide organisations with insights to what their strengthsand weaknesses are.


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Developing a balanced Scorecard may prove very instrumental in developing further strategies forquality assurement. The Balanced Scorecard is a communication, informing and learning system.Used to help concatenate and to communicate strategy by aligning individual, organisational,business unit and cross-functional objectives to achieve common goals and mission. An effectivescorecard analysis and deployment is a link that connects plans to the organisations key value-adding and support processes.

ProcessesAnalysis of processes should be an integral part of the organisation, there should be a focus onprocesses rather than the functions, and be part of the Kaizen initiative for continuousimprovement.

In Japan they have a saying, Look after the process and the product looks after itself! (Hutchins,1990)

Above is Hitachis system for evaluating quality management in departments. This shows that itis an integral part to the development of best practices and it encourages a Kaizen environment.

An example process is the Just in Time (JIT) scheme. Using JIT involves everyone within theorganisation and everyone external to it, from suppliers to the delivery personnel. It is a method


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of minimizing product and supply inventories by ordering materials as close as possible to theactual time of need. This reduces the cost of maintaining inventories of expensive items, such asnewer biotechnology drugs. Precise timing and reliable suppliers are essential for this techniqueto work effectively.

ManagementManagement can be referred to as the corner stone of a successful Total Quality programme asthey hold the seat of most influence upon those working for the company. They do not as suchproduce anything, but they get results through their employees. Their management style maycome into play when trying to get the best from staff, whether it is through an authoritarianapproach or a participation styled approach.

TQM is a way of life for a company. It has to be introduced and led by top management. This is akey point. Attempts to implement TQM often fail because top management doesn't lead and getcommitted - instead it delegates and pays lip service. Commitment and personal involvement isrequired from top management in creating and deploying clear quality values and goalsconsistent with the objectives of the company, and in creating and deploying well defined

systems, methods and performance measures for achieving those goals. These systems andmethods guide all quality activities and encourage participation by all employees. If leadershiproles in TQM arent taken up by chief executive officers (CEOs) and their line senior managersnothing much in ways of changes will be implemented and any that are wont stand the test oftime.

(Europe 2001)

Above a diagram showing more the emphasis on making the standards more streamlined anduser friendly for businesses in the new series of revised standards, embracing ISO 9000, ISO 9001and ISO 9004, and how the integration relates to management principles, practices and systems.

People

Employees do not decide on how they are to be managed, but when implementing change tomanagement styles you cannot expect that all employees will pick it up and accept it becausemanagement sees the need to make the change. It is imperative that management keep


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employees in the picture at all times when decisions are being made regarding TQM, whichshould encourage participation and help ease transition.

When the identification of the tools for a system to be used is complete it should be implementedthat the right training is given to the right people. This is to emphasise the benefits of why theirusing them and how they are using them. Training given to the right people has been proven to

minimise the misuse of the tools and techniques.

On-going education and training of all employees supports the drive for quality. Employees areencouraged to take more responsibility, communicate more effectively, act creatively, andinnovate. As people behave the way they are measured and remunerated, TQM linksremuneration to customer satisfaction metrics.

Teamwork

Within an organisation it is important to emphasise the need of teamwork. TQM is an all ininitiative, which requires everyone to work individually and as a team. This can be within the onedepartment of a company or interdepartmental. Teams in a kaizen environment could developthe culture of total quality through building collective responsibility and develop a sense ofownership, provide additional communication channels between individuals, management,customers and suppliers, develop problem solving skills and facilitate awareness of qualityimprovement potential, leading to behavioural and attitude change. (Barrie G. Dale, 2007)

An initiative that works well within teamworking is quality circles. Within quality circlesproblems will only be solved if the team has developed effective relationships. They would tendto operate by consensus as the members work together to improve quality and quality controltechniques.

CultureMany (e.g., Hyde, 1992; Chaudron, 1992) have noted that TQM results in a radical change in the

culture and the way of work in an organization. A fundamental factor is leadership, includingphilosophy, style, and behaviour. To make TQM an organisation wide initiative, it has to berooted in the culture of the company. It needs to be aligned with human resource systems,including job design, selection processes, compensation and rewards, performance appraisal, andtraining and development. The culture requires quality in all aspects of the company'soperations, with processes being done right the first time and defects and waste eradicated fromoperations.

Firms with strong comprehensive culture implement highly the TQM elements of topmanagement leadership, people, process, customer and supplier management. Firms with clan-driven culture implement highly the element of process management while firms with hierarchy-driven and weak comprehensive culture implement lowly to moderately all elements. A culture-

based TQM implementation strategy is proposed. (Koh Tas Yong, Mar 2008, Vol. 26 Issue 3)


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The emerging business worldWithin the emerging business world there are several elements that have become the norm now

that may not have been a concern to organisations before. With the internet and consumersmore willing to voice their opinion there are new elements to consider and implement TQM into.There has been an explosion in the consumer service industry, time has become more compressed

with everything now seemingly available at the touch of your fingertips through the internet,companies are becoming more global orientated therefore less local and companies areintegrating all these elements into their organisational structures.

Consumer service explosionWithin a company at any level an employee may have to deal with a consumer/customer, that iswhy TQM is important so that the employee is correctly tooled to deal with any situation.

As outlined in a case study of Vista Optics Limited listening to customers can provide a basis on

where to go in business and what improvements can be made,

To be honest we thought we did! It is only after a concerted effort in this area, driven again bythe desire for excellence that we really began to listen to the real voice of the customer. As aresult, we have brought out new products, discovered new customers, forged partnerships withsome customers and know a lot more about their real needs - 99.2% of all orders received by4.00pm are now shipped the same day, an improvement from ca.90% in 1997, whilst substantiallyreducing stock levels during the same period. (Vista Optics Limited,2000)

Feedback is an important element of catering to consumers, external indicators relate toconsumer perceptions and product/service enhancement. Consumer surveys, externalbenchmarking and market reports are tools that can be used in assessments against future plans

and/or roadmaps.

Time compressionSupply chains compete, not companies (Martin Christopher)

With the continual improvement in information technology access to information and requestsmade by consumers is happening at a faster rate than before. This is where if TQM isimplemented at the core of an organisation and everyone is trained in maintaining andcontrolling quality of their work, when aiming to increase productivity total quality should bemaintained.

It is clearly recognized that the components included in the purchasing tools dimension of TBST

(Time-based strategies and tactics) are closely associated with the broader family of tools,philosophies, and initiatives called total quality management (TQM) or continuous qualityimprovement (CQI).(Carter, Vol.27 no.8 January 1)

When using JIT production everything relies on timing and reducing waste. Just-in-time is havingthe right part at the right place in the right amount at the right time. This technique shortenscycle times, decreases the amount of inventory that a company carries, leads to low work-in-process (WIP), and creates a flexible atmosphere for the type or amount of product that a


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company would like to run and most of all streamlines work flow through a manufacturingfacility.

Globalisation

Globalisation leads to many companies, especially in the manufacturing industry in the 1980s, tofall victim to the improved quality standards being exported by the Japanese. Being the initiatorsof the TQM system, the Japanese had the lead on the competition in improving their qualityprocesses and systems. Globalisation brings risks due to which they are unlikely to survive intheir present form without improving quality, competitiveness and management practices.

With increasing globalization and global competition, quality management is becomingincreasingly important to the leadership and management of all enterprises and organizations.Quality Management Principles provide understanding of and guidance on the application ofquality management(Europe 2001)

Benchmarking is a tool that could be used very effectively if an organisation finds itself underpressure from other organisations within a global market. Benchmarking is a means ofestablishing, quantifying and comparing one activitys performance against another. Within a

very competitive market benchmarking may be very hard, functional/generic benchmarkingwould be a good option as they would be able to take the lessons learned in other best-in-classorganisations specific processes, in different industries.

Organisational IntegrationIntegration has been defined by some researchers as the quality of the state of collaborationamong departments to achieve unity of effort demanded by the environment (Lawrence andLorsch 1967, Galbraith 1994). In current organisations integration between departments isnt anif it happens situation it is a certainty. For total quality to be effectively initiated at its core,project teams would be made up from production staff all the way to the accounting staff. This isto ensure that all areas are covered when planning and setting conditions in work.

An important element of making integration work within an organisation is that measurementand feedback channels are clear and concise.

Measurement, from a baseline, needs to be made continually against a series of key resultindicators internal and external in order to provide encouragement that things are gettingbetter (i.e. fact rather than opinion). (Barrie G. Dale 2007)

Conclusion

Within the current environment and markets many companies are growing because of theinformation era or are being incorporated into already established global organisations, forexample EA Inc. in October 2007 acquired BioWare (Austin, Texas) and Pandemic Studios(Brisbane, Australia) to be incorporated into its global operations.

One thing thatis not changing is the enormous advantage EA holds with the breadth of ourportfolio and the quality of our people. Creative people are the core strength of our company(Electronic Arts Inc., 2007)


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Total Quality Management is a mindset that needs to be established in an organisations core if itis to be successful. At all levels in all departments a mindset of quality management andcontinually improving should be primary, when expanding and developing as a wholeorganisation, new challenges would be dealt with in the most efficient way. But also at all levelstools and techniques should be clear to the users, goals and standards should be set out in anattainable fashion and everything should be traceable through feedback to analyse whathappened and how it could be improved. Quality within the organisations processes andemployees should also be recognised and promoted as a distinguishing factor.

When growing and bringing in new businesses, if TQM is lead by the top executives of anorganisation, it inspires the other members of the organisation to incorporate into their daily

work and self training. It is always a part of the continuous improvement (Kaizen) mindset,continue to improve through daily actions and quality takes care of itself.


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BibliographyTotal Quality Management & Business Excellence, 2003.

Barrie G. Dale, Ton van der Wiele and Jos van Iwaarden.Managing Quality 5th ed.Oxford:Blackwell Publishing, 2007.

Businessballs Ethical Work and Life Learning.http://www.businessballs.com/ (accessed April2008).

Carter, Craig R., Hendrick, Thomas E. Organizational determinants of time-based strategies andtactics. International Journal of Physical Distribution & Logistics Management, Vol.27 no. 8(January 1): 445-458.

Edward de Bono & Robert Heller's Thinking Managers.www.thinkingmanagers.com (accessedApril 2008).

Electronic Arts Inc., Notice of 2007 Annual Meeting and Proxy Statement

Europe, United Nations Economic Commission for. Quality Systems for EnhancingCompetitiveness of SME's. Expert Meeting on Best Practice in the Creation of Quality Systems forEnhancing Competitiveness of SMEs.Geneva: United Nations Economic Commission for Europe,2001.

Free Management Library.www.managementhelp.org (accessed April 2008).

Hutchins, David.Achieve Total Quality.Heartfordshire: Director Books, 1992.

Hutchins, David. In Pursuit of Quality.London: Pitman, 1990.

iSixSigma.www.isixsigma.com (accessed April 2008).

Koh Tas Yong, Low Sui Pheng. Organizational culture and TQM implementation in constructionfirms in Singapore. Construction Management & Economics, Mar 2008, Vol. 26 Issue 3: 237-248.

Martin Christopher.www.martin-christopher.info (accessed April 2008).

Poonsook Janpen, Kusuma Palaprom and Pong Horadal.An Application of Total QualityManagement for Thai Communities Knowledge Management Systems.Bangkok: PhranakhonRajabhat University, 2005.

Tanner, L. J. Porter and S. J.Assessing Business Excellence.Oxford: Elsevier Butterworth-Heinemann, 2004.

Vista Optics Limited, Case Study via Department of Trade and Industry, 2000

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Discuss the Key Elements of Total Quality Management